The Buenos Aires Cereal Exchange has issued a new report this Thursday (06.22). It says that the institution ratifies its estimate for Argentina’s soybean production in this season at 57.5 million metric tons. This happens as there are only 1.1 million acres to be harvested yet. The volume would be only below the record of last year (60.8 million metric tons), but yields would be the highest in history even with the reported floods and the highest losses in 17 years.
The government of Paraguay has already sent a bill to the Paraguayan Congress that would impose taxes at a rate of 15 percent for all grains exported from the country. President Horacio Cartes believes he has enough votes to approve the measure in an agreement with the leftist opposition. Paraguay, today, is the fourth largest exporter of soybeans in the world with 6.3 million metric tons shipped. The argument of the Paraguayan government is that the agricultural sector has a revenue of over US$ 3 billion, but contributes less than other sectors of the economy. This year alone, the soybean output in Paraguay overcame 10 million metric tons.
In December of 2015, Argentina eliminated export taxes on wheat and corn. The result of the elimination was the doubling of wheat production and generating a growth of two percentage points of corn production. A program of reduction of export taxes on soybeans until its elimination in 2019 was also set.
The planting of the wheat surface in Argentina has reached 35 percent of the projected area, according to the country’s government. In one week, there was an advance of 17 percentage points and it is 13 percentage points ahead of the average of the last four years for the period. There is an estimate that Argentinian exports would reach 11.3 million metric tons in the season.
Because of a conflict that is extended for over four days, there are over 60-grain barges stuck in the region of Rosario, the main export port of Argentina, and that can generate losses of up to US$ 25,000 per boat. Workers of the oilseed complex of Rosario demand an update of the regional minimum wage. The total loss in these four days is estimated at US$ 1.5 million. There is no sign that the strike could be lifted anytime soon.
A high probability that rains might affect the south of the Buenos Aires province region in Argentina with a few interruptions with sun and thunders, marking instability with the cold front. That is what is being told by the Rosario Board of Trade this week. The volume of raindrop would overcome 3/8 inches. For after Sunday, lower temperatures are forecast.
The volume of wheat exports in Argentina reached 8.9 million metric tons in the 2016/2017 season crop and would beat a new record, according to the Rosario Board of Trade. In the 2011/2012 season, the previous registered for the winter cereal, the sales reached a total of 13 million metric tons.
The Rosario Board of Trade forecasts that a record volume of corn would also be exported with the total of 24 million metric tons that would be sold abroad with the record reached by mid-June.
The bad news would just stay with soybeans. The oilseed has the worst sales in six years and total sales accumulated in the year is four million metric tons, which is less than wheat, and below the average of 5.85 million metric tons of the last five seasons. The reasons for the lower exports of soybeans is the local export taxes at a rate of 30 percent and also the lower price of the oilseed in the international market.
The sales of soybeans in Argentina have jumped 49 percent in one week overcoming 1.5 million metric tons in the period. On the other hand, the sales are still behind of what was registered at this point in 2016. The rebound of sales was due to the recovery of prices, but farmers are unhappy with the exchange rate and prices below US$ 250 per ton. The volume sold in 2017 is at four million metric tons, while the average for the first five months in the past five yars is 5.85 million metric tons.
Soybean sales have advanced in Brazil because of a recovery of prices and a more favorable exchange rate in the country, according to a report from consultancy Agroconsult. Another reason for more sales is the approach of the window to buy more agricultural inputs for the next season. The consultancy also keeps estimating the total output in the country at 115 million metric tons and exports would reach 61 million metric tons with a roof of exports in the coming 30 to 60 days.
As the harvest is about to start in the southern state of Paraná in Brazil, there is a forecast of frost in the coming days, consultancy AgRural informed today (06.09). The surfaces in the western region of the state, the first to plant and harvest, are not ready yet for harvest. The frosts could potentially affect late planted areas in the state.
In the meantime, the harvest already advanced to 6.6 percent of the surface in the state of Mato Grosso, the largest producer of the cereal. There are problems reported with the quality of the grains leaving the state because of previous precipitations. In all other regions, the harvest has begun in just a few lots or even have not started yet.
The Buenos Aires Cereal Exchange has reduced in 247,000 acres the planting estimate for wheat in Argentina. The reason is the delay of planting due to the excess of moisture in key producing regions of the country, like parts of Cordoba and the west of Buenos Aires. As of this Thursday (06.09), the planting reached 21.4 percent of the total surface calculated at 13.5 million acres. The total production increase compared to last year would be 7.8 percent.